5 Flexible Prepay Power Options without Credit Checks

Looking for a power retailer accepting bad credit? Or to sign up without the hassle of an invasive credit check?

Only a couple of years ago you would have been limited to the big players. Thankfully this is no longer the case.

The large retailer offerings are fairer, and there is a growing number of smaller, more nimble and often cheaper prepay companies to choose from. The market is increasingly focusing on better serving, rather than penalising, prepay customers.

Why Choose Prepay Power?

Switching to prepay power can help households manage their electricity spend and avoid an unexpectedly high power bill at the end of the month.

Operating in a similar way to prepay mobile phones, customers top up their power account and then keep track of the balance. When the first innovative prepay options were introduced, the press was pretty positive.

For most customers, this provides an incentive to actively monitor energy usage within the home. Keeping an eye on your power usage should lead to lower power usage over time and cheaper bills.

Additionally, the flexibility of top-up options can help to spread the cost of power over time.

The Downsides of Prepaid Power?

Although there is now a greater choice in prepay power companies, there are still a number of downsides to consider.

The major downside is that by going prepay your choice of providers will be limited and you may not be able to get the cheapest power deal available.

In the instance that you have a prepay meter that only supports one retailer, you may also be locked to that retailer. You may not be able to switch retailer without also replacing your physical power meter.

I understand this, but what is worse – not using power, or using power you can’t afford and running up debt?

I would prefer that households can afford their power, and actively make decisions to cut their electricity usage. For example, using energy efficient lighting, insulating (or convincing their landlord to insulate) and using other forms of heating like a wood burner.

No Other Option

If you have previously had your power disconnected, have bad credit or are looking for power companies with no credit check – then prepay power may also be your only option for now.

Alternatively, if you move into a rental where the landlord or previous tenant have installed a prepay meter, then you may only have prepaid power as an option. Changing a dedicated prepaid meter is an option, but would typically require landlord approval and cost between $100 – $250 to change.

While I think pinning ‘fuel poverty’ on prepay meters is sensationalist, I do agree that businesses need to be careful to avoid taking advantage of prepay customers. Especially where a customer is locked into a specific meter and has limited or no option to switch retailers.

While compulsory customers may be an attractive segment of the market, there are social and reputational consequences. Mercury, previously Mighty River Power, has taken repeated flack in recent years. Validly or not, you don’t want to be in the press.

Glo-bug, the Mercury Energy owned prepay option experienced significant growth from 2014 to 2015 but has since been steadily losing customers.

The most dominant new entry is Wise Prepay, owned by Hunet Energy.

The chart below shows in green the growth and subsequent decline in Globug connections, although Globug still has the largest number of prepay customers nationwide at around 28,000. The chart also shows in blue the growth of Wise Prepay.

View your balance and top-up via mobile phone, or with a green GLOBUG payment card thousands of outlets such as dairies, i-sites and bookshops.

Notifications are given via the Globug app and text message (if opted in) 36 hours and 12 hours before creditrunsout. Power is disconnected if balance runs out, but there is no charge for dis/reconnections.

One interesting aspect about Globug, is that it may be helpful if you have existing outstanding debt with Meridian Energy, Mercury Energy, Tiny Mighty Power or Contact Energy. There are agreements in place that allow you to transfer to Globug, and the debt is paid off over time without incurring penalty fees or interest. An extra amount is added to every topup made (25% in summer, 10% in winter months) which goes towards the debt.

Moderately sized electricity retailer, owned by Meridian Energy, with a business model based upon heavy online user interaction and operating a pre-pay-ish payment model (more on this below).

Power is purchased online and regular ‘specials’ are offered to encourage the advance purchase of power units. Powershop fans report lower power prices than a traditional retailer, as long as the monthly Simple Saver Powerpacks and Special Powerpacks are purchased when available.

Power prices will fluctuate during the year to reflect the change in the average wholesale power price during the year. Typically winter months being more expensive than the summer months, when power prices are cheaper.

Credit Checks

Powershop have confirmed they do undertake credit checks for new customers as part of the signup process.

Prepay or Not?

The official Powershop line is that they are a postpaid electricity retailer, using a standard meter onsite to record usage and billing for end at the end of the month.

“Where we differ, is that we offer our customers discounted electricity in the form of ‘Powerpacks’ – an excellent way to save money by buying in advance, plus, you won’t lose supply if you do not buy in advance.”

Why I consider them a ‘prepay-ish’ retailer is purchasing the discounted ‘Powerpacks’ inevitably means buying electricity to use in the future.

I personally don’t think being a prepay retailer is a bad thing, as customers are able to purchase power with smaller payments and can be more aware of what they are spending day-to-day.

Signup Credit

Powershop offer a $150 signup credit, applied over the first three months.

View your balance and top-up via mobile phone, or retail outlets. Unlike Globug, Wise Prepay is available for any property with a newer smart meter (as long as you are in their coverage area) and doesn’t require a special prepay only meter.

23 Replies to “5 Flexible Prepay Power Options without Credit Checks”

i am currently with globug and i think it is stupid to not have a free phone number to ring when your power gets disconnected as most people do not have landline to reconnect the power this has happened to me quite a bit now and not a happy person as it is night time and have to wait to go to my aunty house to use landline

Prepay to the Wairoa Area is non exixtant. Globug does not,Contact prepay no,Wise only Auckland and Waikato.Trustpower yet to hear. So those with impaired credit have no other option.We come under the Hawkes Bay.

Hi Ruth. That sounds like a terrible situation. I am surprised that Globug doesn’t cover Wairoa. My suggestion would be to try Flick Electric. If you don’t have any luck with them, maybe try approaching your local lines company Eastland Network (http://www.eastland.nz) to see if they have any suggestions, as they will deal with all the retailers servicing Wairoa. They may be aware of some trends (e.g. retailers keen for business) and they also are a major shareholder in Flick. So may be able to help a local customer out. Good luck and let me know how you get on. Nathan

I hope wise is better as I need a power company asap contact would not take me due to bad credit ive applied to energy online but won’t know till five days power these days is so high I’m a solo mum and its not easy for me.

no. I switch from them. They come onto your property and do various work when you tell them not to – and they don’t even tell you. I rent and I had no time to talk to ll about changing things around here. I told them and they said no problem. In few days they sent a guy while I was at work to change the meter. When I called them back they said “they had no information about it”. BS! i sent them the logs and no response. It’s an absolute dishonest provider!

I was with wise power for a long time! They are excellent! Have a online service where you can top up using your debit card, the 0800 number is free from a cellphone. They however only are available in Auckland and Waikato. If they came to the Hawkes Bay, they would wipe Globug off the map!

hi i just moved to Hamilton and am with glo bug so i have power the only problem is they do not provide gas for hot water (piped gas) my problem is i have bad credit and cant get anyone to provide me with gas . Is there anyone that will provide me with gas with my bad credit or does my family have to have cold showers

Hi Lucy are you renting? I only ask as my household was with Glo bug for quite sometime & unfortunately they do not supply gas as I have had the same issue with the home I rent. I insisted in asking the property owners if they would convert the property into electricity & do away with gas as it had been disconnected for sometime & it was a battle, but after a year of struggle it finally got done.
So I honestly understand your situation & so wish you all the best.

Hi Lucy are you renting? I only ask as my household was with Glo bug for quite sometime & unfortunately they do not supply gas as I have had the same issue with the home I rent. I insisted in asking the property owners if they would convert the property into electricity & do away with gas as it had been disconnected for sometime & it was a battle, but after a year of struggle it finally got done.
So I honestly understand your situation & so wish you all the best.

Hi. Does this sound right I’m paying over $358 a month with Meridian Energy and there’s only 2 adults and a 2 year old. I feel like it’s a RIP off. Trying to find a cheaper alternative but having bad credit limitis my options any advice?

Hi Erin – It’s hard to know without more info about where you live, how efficient your home/appliances are and which tariffs you are on. My recommendation would be first to change every lightbulb over 20W to an energy efficient one (LED preferably, or compact fluorescent (the spiral ones)). This is the biggest change you can make for immediate savings. Good luck, Nathan

Erin – No that doesn’t seem right they are also connected to Powershop which is why I am looking at a cheaper option but not Glo Bug as they ripped me off big time but would like to go back to post pay but not having much luck being a pensioner

I am having the same issue Erin our power is 350+ a month and we don’t use electric heaters! 2 TV’s and the usual house hold items used here and there and it’s priced like I’m paying for 3 houses! I’m with power shop but cannot get any other power company to take us on.